FHA Loan Help for Homes Damaged by Wildfires, Floods, and Hurricanes
August 2, 2024
2024 has been another year of larger-than-expected storms, floods, fires, and other natural disasters. In July 2024 alone, the FHA and HUD extended disaster relief options initially enacted in 2023 for Maui County, Hawaii.
That area experienced a major disaster due to wildfires, and extensions were granted to FHA’s foreclosure moratorium program for the area and other types of assistance.
HUD “further extended the foreclosure moratorium for properties located in Maui County, Hawaii” in late summer 2024 due to the extent of the devastation. And this is just one example.
If a natural disaster has affected your home or your ability to make your FHA mortgage payments and you live in a federally declared disaster area, you have the right to certain types of relief to help protect your home.
That relief can take the form of a foreclosure moratorium, modified mortgage payment options, or other measures.
The mortgage industry and The United States Department of Housing and Urban Development have options to support qualifying borrowers whose homes have been damaged or destroyed by a disaster in federal disaster areas.
In addition to relief offered to some homeowners through the Federal Emergency Management Agency and the Small Business Administration, the FHA and HUD also have options.
The key is to contact your lender and the agencies that can help you in the recovery phase. Do you know the steps to take if you're struggling to pay your mortgage because of a disaster?
The Department of Housing and Urban Development's official site notes that acting as soon as possible is very important if you qualify for foreclosure relief.
You must first notify your FHA lender, submit any required supporting documentation, and be prepared to resume mortgage payments at the end of the moratorium period.
If you can still make payments on a damaged home, continue to do so. Don’t assume payments are not required after a natural disaster, this is not true unless your lender tells you otherwise.
You can assess your ability to get help on your FHA mortgage after a disaster. According to HUD.gov, ask yourself:
You should also do so if you answer yes to both questions above but have yet to miss any FHA mortgage payments. Anticipating these problems can help if you don’t believe you’ll miss a mortgage payment soon.
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That area experienced a major disaster due to wildfires, and extensions were granted to FHA’s foreclosure moratorium program for the area and other types of assistance.
HUD “further extended the foreclosure moratorium for properties located in Maui County, Hawaii” in late summer 2024 due to the extent of the devastation. And this is just one example.
If a natural disaster has affected your home or your ability to make your FHA mortgage payments and you live in a federally declared disaster area, you have the right to certain types of relief to help protect your home.
That relief can take the form of a foreclosure moratorium, modified mortgage payment options, or other measures.
The mortgage industry and The United States Department of Housing and Urban Development have options to support qualifying borrowers whose homes have been damaged or destroyed by a disaster in federal disaster areas.
In addition to relief offered to some homeowners through the Federal Emergency Management Agency and the Small Business Administration, the FHA and HUD also have options.
The key is to contact your lender and the agencies that can help you in the recovery phase. Do you know the steps to take if you're struggling to pay your mortgage because of a disaster?
- Contact your lender for further information and to check what type of relief you may qualify for.
- If you have an FHA-insured mortgage, you may be eligible for “loss mitigation assistance” to help you maintain your home.
- Your participating FHA lender may consider enrolling you in a forbearance plan if doing so helps you keep your home.
The Department of Housing and Urban Development's official site notes that acting as soon as possible is very important if you qualify for foreclosure relief.
You must first notify your FHA lender, submit any required supporting documentation, and be prepared to resume mortgage payments at the end of the moratorium period.
If you can still make payments on a damaged home, continue to do so. Don’t assume payments are not required after a natural disaster, this is not true unless your lender tells you otherwise.
You can assess your ability to get help on your FHA mortgage after a disaster. According to HUD.gov, ask yourself:
- Was my house damaged in the disaster?
- Do I lack other resources, like insurance settlements, to help recover?
You should also do so if you answer yes to both questions above but have yet to miss any FHA mortgage payments. Anticipating these problems can help if you don’t believe you’ll miss a mortgage payment soon.
------------------------------
RELATED VIDEOS:
Don't Skip the Home Inspection
Bigger is Better With a Jumbo Loan
Insuring Mortgages With the FHA Funding Fee
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